Google Ads can be a complex beast, but one thing you have absolute control over is your monthly budget, which can be a fairly simple process to calculate. With this method you will be certain on the exact budget you will need to compete when it comes to Google Ads for your property management company.
The Importance of the Right Budget
When it comes to anything involving pay-per-click advertising, it is essential that you have a sufficient budget. Say your budget allows for two clicks/day, and two people click your ad before 10:00 AM, your ads will disappear for the rest of the day. If you do not properly set your budget, you will miss out on potential business.
We advise on following one simple rule: Budget for your busiest day. When you’re setting a budget, think about the day that you receive a lot of clicks on your ads; in our experience that day is Monday. Make sure your budget covers the average number of clicks on your busiest day and you will be set up for a successful Google Ads campaign.
Setting Your AdWords Budget
The way you think of how much you want to spend monthly on AdWords, Google looks at it as how much you want to spend each day. For example, say you don’t want to spend more than $500/month, in Google’s eyes that means that you will be spending $16.24/day.
How did we get that number? Take your monthly budget and divide it by 30.4, which is the average number of days in a month.
So $16.24 is the amount that Google will never exceed in a given day. However, Google will spend up to 120 percent of your daily budget just to make up for the days that you don’t have as much traffic, but think of that number as your limit on a day to day basis.
Budgeting for Your Busiest Day
Let’s use a real life example. If you’re trying to get the maximum traffic for a Monday from property owners in your area, you might average six clicks on your busiest day. Let’s say the average cost-per-click in your market is $4. So the formula goes:
6 clicks x $4 per click = $24
This means that we need to make sure our budget is sufficient to cover $24 every Monday. So your monthly budget will be:
$24 per day x 30.4 average days in a month = $729.60
If you want to make sure you capture all the traffic and opportunities in your market in a given month, you want to be willing to spend this much or more.
Adjusting Your Budget
What if you don’t want to spend that much? Remember that we’re budgeting for the busiest day of your month – Monday. It’s important to know that you may not always spend $729.60 each month. A lot of months it will be less; we are preparing ourselves to get your ads the most exposure in front of landlords and investors.
See the average number of clicks your busiest day gets, from our experience they are Mondays. Use the average cost-per-click (CPC) that you are spending for each click and multiply it by the average number of clicks that you get on your busiest day. That is how your budget is set.
This should give you a good idea on how to set your Google Ads budget. If you’d like to get a refined estimate on what a good budget will be for your property management company, contact Fourandhalf for a free property management marketing assessment.